Back to Basics: The Affiliate Marketing Business Model

Many readers of BestDesign2Hub will already be intimately familiar with what affiliate marketing is and its role in monetizing web-based content, but what if you are new here, and you’ve heard this term, but are not 100% sure what everyone is talking about? Fear not; this article will bring you right back to the basics on that one and quickly bring you up to speed on what you need to know.

Value in Web Traffic

So, the essence of any business strategy is essentially this. Invest in a thing, add value to that thing, and then sell that thing at a higher price than what you paid for it. This principle works in a very straightforward manner where things like property or stocks and shares are concerned, albeit it’s notoriously difficult to predict, but where products are concerned, valueis largely determined by ‘marketability’, i.e., to what extent do other people wantit? Take YouTube as an example. A person might merely want to share the updates of their life in video format, not thinking too much of it. If, however, that person portrays their life in a particularly interesting way, even if by accident, then a million people might end up watching their videos and subscribing to their channel. This creates an enormous avenue for visibility, which people looking to sell online products will be very interested in indeed.

Web Traffic As A Business Model

Basically, it works like this. A digital marketer will approach awebsite, blogger, or an influencer with a vast online following and ask if they are ok with some ads appearing in or around their content (alternatively, the content producer may approach the marketer). The products advertised will then be visible to the producer’s audience, who will then, statistically, be more likely to click on and buy those products, which the marketer will then profit from. The marketer will then (hopefully) pay the producer for their assistance in this regard.

A Hypothetical Example

Say you are living in Chula Vista or San Diego, California, producing a vlog on YouTube about your recent surfing adventures. Your first step will, of course, be making sure you have a reliable internet provider Chula Vista;your next port of call will be to actually check your views, which will give you an indicator of the market potential of your content. If the potential is there, then you can monetize this by approaching digital marketers with a vested interest in the type of audience your followers represent. In addition to getting pay-per-click contracts with digital marketers, for example, you can also use your influence to directly market products for clients by mentioning them in your videos. For example, you may take the opportunity to talk about different waxes for your board, or where to go for board repairs, or the kinds of sunblock you like to use when out on the water. The possibilities are endless.

Don’t Get Ahead Of Yourself              

If this all sounds too good to be true, then that is because it all too often is, because the reality is that without that extensive following, you can market whatever you want, and it will get you absolutely nowhere. Think of it like farming. In order to reap the benefits of a harvest, you must first sow your crop. Affiliate marketing is no different. You build your web following first, then you reap the benefits of its value. This takes time, genuine originality, an understanding of your audience,and no small amount of patience.